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14 September 2012

IPE: Bernardino baffled over Solvency II capital fears


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Gabriel Bernardino, chairman of insurance and pensions supervisor EIOPA, has dismissed the ongoing debate over whether capital requirements under Solvency II would hurt European insurance companies.


"Under Solvency II", he told IPE, "there are various possibilities to make your own calculations – under supervision, of course". He also pointed out that, in the standard model, "we needed some simplicity", which "is of course calibrated to a European average" and therefore does not suit every company's individual requirements.

He said he was convinced that every company would be able to calibrate risk assessments to fit its own risk structure better using internal models. On the question of whether volatility has increased under Solvency II, EIOPA's chairman said volatility was "not in Solvency II but in the markets".

He stressed that both the insurance and the pensions industries needed "more reality" in their risk management. "Risk assessments that deny market reality are not the answer and help to preserve schemes that are clearly unsustainable", he said.

Full article (IPE subscription required)



© IPE International Publishers Ltd.


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